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Jet Airways fall on brewing concerns over Etihad deal

Etihad Airways eyes higher stake in the local carrier along with a host of other new conditions.

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SI Reporter Mumbai
Last Updated : Feb 22 2013 | 10:03 AM IST
Jet Airways Ltd, country's biggest aviation firm, dropped over 4% in early trades this Friday after the Abu Dhabi-based Etihad Airways put a host of new conditions including an option to buy up to 49 per cent stake in the firm.

Sources close to the deal say, besides a higher stake (earlier, the negotiations were on for sale of up to 24 per cent), Etihad has asked for its representation on the board of the Indian airline, in sync with its shareholding. It wants operational control over the airline, as well as its fleet acquisition plans. The West Asian carrier has also sought protection under a Bilateral Investment Promotion and Protection Agreement (Bipa), arguing it does not want to face a situation similar to what telecom giant Etisalat faced.

At present, Goyal holds 80 per cent in Jet Airways — 79.99 per cent through Tailwinds Ltd, a firm based in the Isle of Mann, and 0.01 per cent directly. The remaining shares are held by the public and FIIs.

At 10AM, shares of Jet Airways fell 4.1% to Rs 537.05 at the National Stock Exchange.

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First Published: Feb 22 2013 | 10:00 AM IST

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